How do NQ and QQQ track so closely?

[Overnight]

...

So, that's the reasoning as to why I don't understand you talking to me about markets soaring north, nor about you saying I shouldn't give someone the actual correct math correlation...hence why people are almost scared to death to interact on voice during real time trading hours,

Bring it Conci.

Only thing I am known for, is I will talk the shit to ye. I have no compunction against it. Just ask Baron. I think that is now why he shuns my calls, because he be all like "Oh no, get that guy out of here, he is a gabber." Hehe.

Can never be sure though. It's like that Halo show.series. Oy!

 

[Concinnity]

Bring it Conci.

Only thing I am known for, is I will talk the shit to ye. I have no compunction against it. Just ask Baron. I think that is now why he shuns my calls, because he be all like "Oh no, get that guy out of here, he is a gabber." Hehe.

Can never be sure though. It's like that Halo show.series. Oy!

I genuinely don't have the patience like I use to, to go back and forth. I don't know what bring it means. Just letting you know I've said about all I am going to. If you still disagree or don't at least see my side of things than there's just too much of a fundamental differing in our beliefs and thought process, that we will just be wasting time to correspond anymore.

 

[Overnight]

I genuinely don't have the patience like I use to, to go back and forth. I don't know what bring it means. Just letting you know I've said about all I am going to. If you still disagree or don't at least see my side of things than there's just too much of a fundamental differing in our beliefs and thought process, that we will just be wasting time to correspond anymore.

It's just Halo, man.

(and here's a nice listening thingy, I think.)

 

[FortuneTeller]

The setups I use are penny neat on QQQ oftentimes. That won't be the case at all with NQ so I'm wondering if it's dumb eventually to just trade NQ but off QQQ signals. And if they ever decoupled, I'd have some extra work to do.

Well hopefully it goes well if you do take entries off of QQQ signals.

 

[Dollardogs]

@Sekiyo @Dollardogs

Neither of you have the correct math. Not sure if it's because of roll over or QQQ not trading 24/7 so your highs/lows don't align or if you are / aren't counting in the ETF management fee, but if you're charting NQ and day trading QQQ than the below is the correct math:

1 Dollar QQQ move = 40 NQ points

or

every 2.5 cents of QQQ = 1 point of NQ

Because 800 shares of QQQ is equivalent to 1 NQ Mini.

40 NQ points x $20.00 per point = $800.00

1 QQQ Dollar x 800 shares of QQQ = $800.00

It's never that neat. I wish it were. Intraday, it ranges from about 40.5 to 42.5

 

[Dollardogs]

It is not a dig on your math, man. It is a dig on your attitude, coming from someone who started this journey in futures 10 years ago this year.

My anger is not directed at you. But is directed at the details, and that caused me to miss out on opportunity.

Stop focusing on the differences between QQQ and NQ and NDX.

You'll lose more profit than you know trying to determine the devil in the details, rather than embreacing the fact that they are both soaring north.

LOL, just saw this. I don't mind the rage. Let it out! You got any general wisdom for someone who's planning on switching to NQ futures in the next 6 months?

 

[Axon]

I'm wondering if it's dumb eventually to just trade NQ but off QQQ signals

One of my strategies involves watching the QQQ level 2 like a hawk and scalping 20 cent momentum moves using /NQ. I do it multiple times almost every trading day between 9:35am and 10:30am eastern time with trades that usually last no more than 5 to 10 seconds and the two are so precisely in sync I have never had a single issue with something unexpectedly happening and that's without even glancing at /NQ while in a trade. I understand that arbitrageurs make this so which is easy to conceptualize but the precise literal mechanics of how this happens on such short time frames is not something I have deep knowledge of. I just know it works well enough to play one off the other without worry.

 

[Dollardogs]

One of my strategies involves watching the QQQ level 2 like a hawk and scalping 20 cent momentum moves using /NQ. I do it multiple times almost every trading day between 9:35am and 10:30am eastern time with trades that usually last no more than 5 to 10 seconds and the two are so precisely in sync I have never had a single issue with something unexpectedly happening and that's without even glancing at /NQ while in a trade. I understand that arbitrageurs make this so which is easy to conceptualize but the precise literal mechanics of how this happens on such short time frames is not something I have deep knowledge of. I just know it works well enough to play one off the other without worry.

Interesting. I've played around with level 2 a few times, but I never got the hang of it well enough to trade it. Now I start trading around the time you stop, around 10:30, once that early volatility has tapered off, grabbing 1-2 moves per day, on average about a dollar each.

 

[Overnight]

LOL, just saw this. I don't mind the rage. Let it out! You got any general wisdom for someone who's planning on switching to NQ futures in the next 6 months?

Only that if you plan to swing it, be sure to have more money in your account for the performance bonds overnight that you might have needed compared to just a few years ago.

Remember...The higher the thing goes, the greater (points-wise) the corrections will be.

I try to keep an eye on the intraday charts when I am out and about, and it is much tougher for me now. But the intraday bull-market patterns seem to be resolving the same in an overall sense, compared to the previous years of the bull pre-2022. A drop in the morning, with a rise starting around 10:30 AM EDT.

 

[oll1e]

Has any personal trader not with a firm been successful with arbitrage like this? It seems it is to quick for a lone trader to capture anything.

^This. You guys don’t appreciate this, but this is really describes fully what’s happening.

The futures are arbitraged (in the longer horizon) via cash-and-carry aka futures basis arb, which these days is most a funding and balance sheet game. The ETF is arbitraged (again, in longer horizons) via creates (if it’s cheap compared to the NAV) or redeems (if it’s rich compared to the NAV), which is also a balance sheet and borrow game.

Both of these are very well known trades, so now HFT guys bring the futures and the ETF in-line on real time basis expecting that both kinds of arbitrageurs are gonna get involved if dislocation persists.